New Year Tax Advisory

Starting out the New Year with a fresh approach to things is always
challenging yet rewarding at the same time. One suggestion I make to
my clients is to not dwell on the past but step up and take control of
your affairs so that you do not fall into a similar situation in the
future. An example of this would be the person who always waits until
the last minute to prepare for their taxes. Now you are probably
thinking that I am referring to taking care of your 2006 tax return
but that is not the case, I am thinking about 2007. If you find
yourself giving donations throughout the year, make sure you have a
new envelope set up to start accumulating those receipts now. If you
have medical expenses that are not covered by your health plan, keep
those receipts in that same envelope. The idea is that if you have
one envelope in one place where you always put tax related
information, then it is easier to find them next year when you have to
file your 2007 tax return.

So what sort of things should you keep? Well here is a list - it does
not cover all things, but at least you will have the majority:

* Donation receipts

* Medical receipts including prescriptions, physiotherapy, massage
therapy, chiropractor, glasses to name just a few

* Summaries from your health insurer wherein they show what you
claimed vs what was paid to you (you get to claim the un-reimbursed
amount as a medical expense)

* Stock transactions be you buying or selling them (for those made
outside your RRSP only)

* If you are self-employed or paid commission income, your receipts
for business expenses, car costs and your home costs (it would be
easier to have these three things in their own envelopes)

* A mileage log

* Tuition fee receipts for any course you take - including self
improvement

* Tax slips including T4, T4A, T4RSP, T4CPP, T4OAS, T5, T3 etc but
watch what year is listed so you do not mix up 2006 and 2007
receipts

* Moving expenses so long as you moved more than 40 km closer to your
new job or school

* RRSP receipts but keep in mind that you can use your contributions
made between January 1 and March 1, 2007 towards your 2006 or 2007
income

If you keep a safe and consistent place to keep these items, you won't
find yourself hunting around and possibly missing out on some
deductions at this time next year. Also, if you have not already done
the above for your 2006 year, you better find them all now as tax
season in only 3 ½ months away!

About the Author

This article was written by Gabrielle Loren -- a partner with
Loren & Company, CGA's located in North Vancouver, BC and can be
reached at gabrielle@loren.bc.ca, at
604-904-3807 or check out their website at www.loren.bc.ca

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